JULY 2008: BIZ LIFE, HELP DESK
Boosting sales in a down economy
FOR SMALL BUSINESSES without large cash reserves, economic
downturns can be especially tough. To stay afloat, you need to
keep the cash register ringing even when customers are cutting
back — and that means thinking outside the box.
One of the biggest mistakes small business owners make is
cutting down on marketing when they start to get strapped, says
Harry DeWolf, district director for the Small
Business Administration in Portland.
“You’ve just got to get more creative,” he
says. “Visit potential clients instead of
sending them stuff. Call them or email them. Work those lists,
and make the message
more personal.”
Another strategy is to form alliances with other businesses to
stretch marketing dollars, says Shelah Johnson, CEO of
Techchex, a Portland-based tech firm that serves small
and
mid-sized businesses. Identify noncompetitive businesses that
share your target
consumer and create co-op ads to benefit both
players. Refer business to other firms and request they return
the favor.
You can turn customers into marketing allies, too. Viral
marketing, such as email blasts that can be forwarded to
others, are an easy way to expand your base without any extra
effort or expense, Johnson says.
One tactic to avoid, though, is discounting. “It
decreases the perceived value of your product or
service,” Johnson says. Instead, offer value-added
incentives, such as one month of free service when a customer
pays for a full year.
To compete with big-box competitors that do slash prices, step
up the service. Look at what the competition doesn’t have
or do and fill in the gaps, DeWolf says.
Spending money might seem counterintuitive at a time like this,
but one investment that could really pay off is a website.
“If you don’t have one, it’s like being
invisible to the world,” Johnson says.
Above all, both experts agree that the key to driving sales in
a down economy is to be proactive and stay positive.
“In many ways, small business is more agile than
enterprise business,” Johnson says. “We know how to
be resourceful. Small businesses have cockroach in our DNA: We
will survive
anything.”
JAMIE HARTFORD
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